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Free Goods in Make to Order scenario in SAP SD

Hello Everyone,

My client provide free goods in their Make to order scenario. I know in standard SAP free goods determination is not possible in MTO scenario. How to handle this? I'm giving an example of my scenario below.

1000 qty of a material in sales order: 900 qty will be priced. 100 qty will be free- This is standard inclusive free goods scenario.

But my client doesn't want to show it as free.

Lets say condition record is maintained for every material unit price is 10 USD.

so net value of 900 Qty will be 900*10=9000. but my client want to show unit price= total net value/total order qty=9000/1000=9 usd per unit.

How to handle this scenario? Please help.

Thanks in advance,


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  • If by free goods you mean applying some discount I would assume that this can be done.

    To be fair, I did not see MTO mentioned as restriction to use free goods in note 796926 - Restrictions for free goods or in the other FAQ for free goods. In which note did you read that this is not possible?

    As to printouts - what you print does not always have to be what you actually have in the system.

  • I read it in a wiki "" in free goods limitation section

    However thank you very much for your prompt response.

    My solution to the client is..

    1) I'll use NRAB condition type calculate the total discount also not to show the free goods in a separate line item.

    2) In invoice printout I'll average base price (Total Base Price-Free goods discount)/total order qty to show the unit base value.

    Please let me know if you have any other solution.

    Thanks in advance.

  • Yes, I meant suggesting to the client to apply a discount without generating sub-items - from what you described they wish to offer the same product, so it seems a reasonable choice.

    It may be a good idea to double-check also with a legal adviser if there are some special requirements for discounted or free items - e.g. tax reporting and printing of discounts on official invoices.

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